I'm sorry to ask a dumb question, but whats the benefit of a lease then buy over a traditional purchase?
I can see that you have not read over the dialogue in this thread. That's okay. You want a quick answer, a perfectly human thing to want.
I went into leasing a brand new car "cold turkey", in complete ignorance in other words. Approximately two and a half months into my lease I found this forum. And iirc within a couple of weeks I found this thread (and another one on the subject, both started by the same guy), and wearlly started reading. "I don't want to know!", was my attitude; but I couldn't stop myself. And I'm glad I did: I bought out our lease at three months and saved over $4K in "lease rent", which is paid each month. After 36 months "the privilege of leasing" is expensive!
The interest rates are getting bigger, making taking out a loan to buyout a lease less and less advantageous. I could pay cash for the buyout: I just had to dip into our savings to do it. So I maximized the benefit of the buyout by avoiding any further expense altogether (and saved that four grand, as I explained).
The intent going in was to offer cash and receive a substantial dealer discount. They already knocked off $2,995 from MSRP. Then they explained the Kia incentives: only $950 for buying; but $5,900 if we leased. So of course we leased. Had I understood leasing better, I'd have taken what I learned here and bought out the lease before the second monthly payment. (But, had I known then what I know now, I'd have not leased to begin with. Read on.)
Oh, imagine our surprise when our offer to pay cash down was met with a measly "we'll take $500 more off, that's it." But, if I had this to do all over again, I'd pay cash and take the total of $4,445 off MSRP for doing so. The only dickering you should ever be involved in is "out the door", period. Don't argue monthly payments. Don't bring up money down (especially on a lease). A trade in can be argued along with "out the door", because that lowers the out the door price of the Stinger. But find out how low you can get the dealer to go; and if it meets your acceptable price for the car, go for it.
The thing that ruined the lease incentive was the added back in "dealer costs and fees" routine. That $5,900 Kia leasing incentive was 90% taken back by the dealer because of added back in "dealer fees and additional costs": as I said, complete ignorance on our part didn't catch what they were doing. It wasn't underhanded, it was just what car dealers do to keep their profit margin up. Someone going in with knowledge of how leasing offers and then takes away incentives puts paid to that game.
Next time, if there is a next time, I will simply go in and talk "out the door" price, deny all additional "dealer add ons" that I don't like or want, and get the price I want and pay cash. They always give an additional dealer discount for paying up front cash. Next time I will fight harder for more than $500. I think ten percent dealer discount off MSRP is a reasonable starting point. If it is last year's model and they are trying to move them off to make room for the current model year, then the dealer discount should be as high as fifteen to twenty percent, depending on other factors like miles on the car (did the dealer use it too much as his temporary daily driver?), noticeable flaws or damage, etc.
Leasing only works if you can afford to finance a loan to buyout the lease right away and save a substantial amount off the difference in the financed loan interest rate and lease interest rates. (Don't even bring up money factor: I have never figured out the first thing about that.)
grand total after the buyout is $31,604. I had thought you need to wait 2-3 weeks for the buyout number, but mine already showed up online (1st business day after purchase).
(I think the sales tax on lease cash is a state by state thing? I didn't see that in Utah, or I missed it; wouldn't be surprised if I did.
